Finding Text
Finding 2022-001: Inadequate internal controls over grant reporting Type of Finding: Significant Deficiency Condition: Reporting of grant income and expenditures to the federal award agency did not have the proper controls in place to detect and prevent inaccurate amounts. Criteria: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee Sponsoring Organizations of the Treadway Commission (COSO). Cause: Internal controls were inadequate over the grant reporting process. Effect: Reporting under the Appalachian Regional Commission grant was not accurate and overreported expenditures. Recommendation: Procedures should be implemented requiring an individual to perform a secondary review of grant reporting and supporting documentation prior to submission. Views of Responsible Officials and Planned Corrective Actions: PRIDE agrees with the finding and recommended procedures will be implemented.